Common use of Non-consent Well Clause in Contracts

Non-consent Well. A Non-Consent Well shall not be completed, recompleted, reworked, deepened, or plugged back in any zone(s) then productive, or then known to be capable of production (as determined pursuant to Section 2.16 above) of oil or gas from any other well on the Lease without the written approval of the Non-Participating Party(ies), unless: (a) said zone(s) shall have been designated in the notice as an objective zone or one of the objective zones for the completion of such well; (b) completion of such well in said zone(s) will not increase the well density theretofore mutually agreed upon by the Parties for said zone(s) or the density pattern with respect to said zone(s) as theretofore prescribed by the State or Federal authorities having jurisdiction of the premises, whichever is applicable; and (c) the horizontal distance between the vertical projections of the midpoint of the zone within a reservoir that is in communication with the completion zone in such well and any existing well in the same zone of the non-consent well will not be less than one thousand three hundred and twenty (1,320) feet if an oil-well completion or two thousand six hundred and forty (2,640) feet if a gas-well completion. The terms "oil well completion" and "gas well completion" as used in this Article shall have the same meaning as those terms are defined in 30 CFR 250.170 Gulf Coast approved by the Chief, Conservation Division, Geological Survey, United States Department of the Interior, effective July 1, 1993, as same may from time to time be amended. Subject to the foregoing provisions of this Article, until the Party(ies) participating in a Non-Consent Well has recouped out of the production therefrom the amounts to which it is entitled hereunder, the Participating Party(ies) shall be entitled to conduct any reworking operations in the well which it may desire, including plugging back the hole to a shallower reservoir. The cost of such reworking operations shall not be subject to the penalty provisions provided in Section 12.2 or Section 10.3, as the case may be.